INTERNATIONAL JOURNAL OF PROFESSIONAL STUDIES

In 1991, government of India has introduced a series of policy measures to liberalize its economy to cope up with the ongoing process of globalization all over the world. Relaxation of licensing rule, rationalization of tax structure, enhancement of the ceiling of foreign direct investment and private participation are some of the outcomes of liberalization which has resultant impact in the integration of Indian economy with rest of the economies and has also resulted in increased share in international trade and increased foreign reserve. Stock market assumes a urgent part in developing ventures and business of a nation that in the end influence economy. Its significance has been all around recognized in enterprises and investors viewpoints. Money markets benefit long haul cashflow to recorded firms by pooling stores from various investors and enable them to extend in business and furthermore offers financial specialists contrasting options to put their surplus supports in. The investors precisely watch the execution of stock market by watching the composite market record, before contributing assets. The market record gives an authentic stock market execution, the measuring stick to analyze the execution of individual portfolios and furthermore gives financial specialist to estimating future patterns in the market.

Keywords: Granger Causality; stock market; sensex